Blockchain in the Supply Chain

Blockchain is ready, right now

Blockchain represents a technology that can help address some of the supply chain’s biggest pain points and most long-standing issues, and it’s fit for purpose, right now. From visibility and traceability to ethical sourcing, dispute resolution and secure digital contracts, blockchain technology is finding increasing applications across the supply chain.

In this article, we’ll take a closer look at blockchain, and how it’s being deployed to transform the way freight and logistics operations do business.

What is blockchain?

Blockchain is a secure, decentralized and immutable shared ledger that can record transactions with 100% fidelity. No matter how complex the system, or how many participants it has, blockchain provides a single, tamper-proof source of truth with which anyone can record, view and validate transactions. Blockchain makes inputted data immutable, which means it cannot be altered by anyone.?

The origins of blockchain can be traced back to 1991, when Stuart Haber and W. Scott Stornetta attempted to create a solution that would prevent people from tampering with and backdating digital documents. The system they developed involved a cryptographically secure series of time-stamped data blocks. Over the next few decades, blockchain technology evolved into a distributed system, where anyone could add blocks to the chain, providing a way to securely, transparently and effectively add verified data to a distributed ledger, which can be viewed by anyone in the network.?

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How blockchain is being deployed in the supply chain

Blockchain can be used to solve a number of important problems in the supply chain. In essence, the supply chain is a notoriously complex network of interlinked companies, many of which have no visibility of one another. With the level of unquestionable transparency blockchain delivers, supply chain stakeholders are able to manage risk, build trust and proactively monitor disruptions to respond before they cause any significant business impact.?

Blockchain can help manage sourcing, transport, facility, or distribution risk for supply chain organizations, by enabling a far deeper view into the supply chain, allowing them to monitor for disruptions, bottlenecks and instability and adjust accordingly before the impacts ripple into their arena of activity.?

It can also help mitigate the risk of unethical sourcing. A study by Oceana revealed that seafood, for example, is mislabelled 87% of the time. Mica is another example of a raw material that is difficult to trace, often originating from illegal mines that use child labor. With blockchain, products can be accurately and verifiably traced from origin to end user.?

An immutable transaction ledger also helps build trust along the supply chain, ensuring distributed organisations, many of which are operating across vast geographical distances, have full visibility over the history of their relationship and how each organisation has added value to a product as it moves along the value chain, helping to settle disputes or contractual disagreements via a single point of truth upon which all parties agree.

Visibility, profitability and efficiency: the promise of tech in the supply chain

Blockchain has immense potential to transform the way the supply chain operates, addressing some of its most pressing and long-standing challenges. Combined with the deployment of emerging IoT and AI technologies, we’re watching the modern supply chain take shape in real time.?

Stargo is another way that supply chain organizations can deploy cutting-edge technology to capture major value in their operations. Through AI-powered automation and analytics, Stargo’s advanced platform delivers unprecendeted visibility, transparency, speed and business intelligence insights for freight and logistics organizations looking to boost margins, optimize processes and supercharge productivity.?

Try a free demo today and find out how you can deploy Stargo to transform your supply chain operation.